Creating a Digital Service Item
To create a digital service in Zoho Inventory:
- Navigate to the Items module on the left sidebar.
- Click the + New Item button on the top right corner.
- Enter details of the digital service you provide in the item creation form.
- Select the product type as Services.
- If you want to save the item as a digital service, select the It is a digital service option.
Insight: If you select a UK VAT rate for the digital service item, it will be applied only on sales inside the UK.
Note: Post Brexit (i.e. from 1 January 2021), the tax treatment for all the countries outside the UK will be considered as Overseas. Therefore, UK VAT MOSS will not be applicable when digital services are provided for businesses that are located outside the UK. Instead, you can register for the Non-Union VAT MOSS scheme in an EU member state or register for VAT in each EU member state where you supply digital services.